Dassault Aviation may be asked by Indian government to enter into JV with local partner to make Rafale aircraft
The Indian government may ask France-based Dassault Aviation to form a Joint Venture (JV) with a local partner to make the Rafale aircraft as a condition for allowing Dassault to execute an order for additional delivery of Rafale aircraft to the Indian air force, The Economic Times reported.
The report cited sources with knowledge of the situation as saying that the Indian government has already held initial talks on a proposal to possibly request for Dassault to rope in an Indian JV partner, with the local partner owning up to a 51% stake in the new venture.
The report also noted that the JV would be able to execute orders for additional Rafale aircraft, on top of the Indian government's off-the-shelf purchase last week of 36 Rafale planes from Dassault.
The list of potential JV partners for Dassault would include, but would not be limited to, state-run Hindustan Aeronautics.
Earlier, the Indian government in 2012 had ordered 126 Rafale aircraft from Dassault, but this transaction was stalled for various reasons. Although the Indian government recently agreed to purchase 36 Rafale planes from Dassault, the government's purchase of additional planes from Dassault may be contingent on the foreign company roping in a domestic JV partner.
The Economic Times